The place foreign exchange market was opened up to retail investors in 1997. Since that time it is hugely well-liked by a lot of traders/investors around the globe. The retail foreign exchange trade is transported out via numerous foreign exchange buying and selling platforms provided by foreign exchange brokers.
All these foreign exchange platforms is made to concentrate on various kinds of traders. Many are made particularly for top networth clients who are required lots of liquidity others are equipped for technical traders who require the most recent charting tools although some are equipped for scalpers who are required fast execution. How do we know which of those platforms are ideal for your buying and selling needs? Go into the foreign exchange demo account. It’s the safest and also the fastest way to find out if a specific buying and selling platform suits your buying and selling style.
Today we shall discuss the primary reasons why you need to ALWAYS trade a foreign exchange demo account before buying and selling live with your personal money.
1. Test out your buying and selling system
Utilizing a foreign exchange practice account is the easiest method to evaluate and modify your buying and selling system/technique without exposing you to ultimately real losses. Since all foreign exchange practise accounts have live cost feeds, they are utilized to check your buying and selling system to determine whether or not this really results in consistent gains.
You may also test pre-programmed EAs to determine whether or not they are really lucrative during a period of time. Tinkering with an active account can result in a substantial lack of your buying and selling capital, thus it is usually easier to try buying and selling a demo account to start with.
2. Examine your broker’s platform
Since there’s no real distinction between your broker’s foreign exchange demo and live buying and selling platforms, you should use the demo to acquaint oneself completely together with your broker’s buying and selling platform. Demo buying and selling enables you to uncover how you can open/close trades, how you can manage leverage, how you can set stop-losses etc.
Some proprietary buying and selling platforms really are a bit confusing to start with but spending a couple of days buying and selling a demo version of the identical platform can make live buying and selling super easy and easy for you personally.
3. Check out the charting tools
Foreign exchange buying and selling as you may know it’s largely according to technical analysis. Actually, most retail foreign exchange traders use place charts to determine which so when to trade. Utilizing a foreign exchange practice account enables you to definitely test a platform’s charting tools prior to committing real cash.
You should use the demo’s charting tools to learn to program your personal EAs (Ea’s) also to test the reliability and consistency of the broker’s data feed. Furthermore, you may also check whether your buying and selling platform enables direct chart-based buying and selling…that is a major requirement of scalpers.